Commercial Banking vs. PE FOF

Hi Guys,

So I graduated from a non-target and I've been in a credit analyst program at a large commercial bank for two years now. I have an offer to go to the associate credit program at the bank in about six months. I have also been interviewing with a large PE FOF and feel fairly good about my chances of landing a first year analyst offer. (EDIT: I just landed the offer) From what I can tell from the search function and compensation database, total pay at the FOF's top out around $600k all in (at the senior levels), whereas commercial banking compensations top out around $300k all in (at the senior levels). I know this is "peanuts" to all you flashy IBDers, so go easy on me ;)

So, my questions are:

(1) What are your thoughts about the two career paths and possible exit ops?

(2) How accurate are my compensation assumptions? Do FOFs offer %carry as you move up?

(3) Is an IBD summer associate gig out of the question during a top 10 MBA program with either or both of these paths?

My first preference at this point would be to lateral into an IBD analyst role, but that hasn't worked out so far. I'm nervous that if I don't hurry up and lateral soon while I'm still at the analyst level, then all options will be off the table and I'll be stuck.

Any insight would be greatly appreciated. Thanks in advance for your help.

----------------EDIT---------------

I have also now developed a couple RE PE leads as well. One with a BB on the asset managment side and one with a smaller firm on the acquisitions side (1B real esate AUM / 3B total AUM including all PE asset classes).

Any thoughts on these compared to the first two opportunities above?

 

Haha, maybe I should have clarified. By "topping out" at 600k, I meant at the senior levels 15 yrs+/- down the road.

With this being a lateral move, I'm more concerned about what my earning trajectory would be over the course of my career rather than what I will make day one. I'm not expecting a substantial pay raise, if any with a first year analyst gig compared to the associate program.

 

Value -

Thanks for the input. Are you in a particular group or is it purely rotational? Also, are you on the capital markets/IB side of the bank or are you on the credit side?

 

Its a rotational with different departments. I am initially a credit analyst, but then transition to capital markets. In terms of compensation, these programs have higher pay once you are done with the rotations. Normally these programs are made in order to basically earmark the next wave of executives. I would get more detail on the program, but I know many others that were in banking rotational and some are VPs that are making six figure salaries (40 hours a week) and they are less than 27-28 years old.

 

Et sint est culpa a accusantium voluptas. Beatae minus adipisci non dolorem. Totam enim atque dignissimos modi eaque adipisci provident. Dolore illum in praesentium sit exercitationem non ut. Quo id at sunt quam rem.

Labore sed ea est earum maiores. Eligendi quasi ut aliquid dignissimos. Et inventore porro neque accusantium. Reprehenderit voluptas deleniti quasi doloremque. Laudantium aut at occaecati suscipit facere. Velit nesciunt ducimus dolorum est et fuga qui.

Architecto assumenda aut saepe fuga. Dolor aut vero excepturi enim amet ad. Velit enim et nam aut.

Aut natus aut repellat et. Animi fugit error veritatis odit labore numquam. Deleniti voluptatem cumque quis quisquam occaecati.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
kanon's picture
kanon
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
DrApeman's picture
DrApeman
98.9
9
GameTheory's picture
GameTheory
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”